Please open your debug.err file in notepad, and link the contents into a post here via pastebin. This will give us some technical information that can help troubleshoot your problem.

The file can be found in My Documents\My Games\Elemental

Be sure to copy the debug immediately after the error occurs; if you start the game again, the debug log will be erased and recreated for the new session.

Try updating your video drivers--you've still got the Win7 RTM drivers installed, and they don't seem to be the correct ones for your card (AFAIK x1300-x1500 cards were never made with more than 512MB of VRAM), which may explain the apparent texture memory issue as in your screenshot.